Amid what has been a game-changing year for the company, Amazon (AMZN) is looking toward bigger and better things, with a potentially record 2025 on the horizon as Amazon Web Services (AWS) is poised to lead a market set for $2 trillion over the next five years.

The company has long been one of the best bets on Wall Street. However, it is its cloud computing business that gives it a significantly brighter future. With Amazon’s e-commerce aspects still a juggernaut, there are few holes in an investment that could make waves well into next year.

Source: Reuters

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Amazon’s AWS an Industry Leader as 2025 Could Bring Huge Gains

There are few companies on Wall Street that can elicit the kind of confidence Amazon does. The firm has long dominated the online shopping craze that has taken over modern consumers. Moreover, it has continued to be at the forefront of some of the biggest technological shifts in modern business.

All of these have led the firm to be one of the favorites of investors heading into next year. However, there is one specific facet of the company that is driving the bulk of that optimism. Indeed, Amazon stock is looking at a record 2025 as its AWS business is set to lead the potential $2 trillion market.

The cloud computing market has been growing exponentially. In today’s climate, it seems like everyone is either using the cloud or trying to figure out how to use it. This has led Grand View Research to project tremendous growth for the sector over the next few years. Specifically, they note cloud computing will grow as an industry to surpass $2.39 trillion by 2030.

Source: Amazon

Also Read: Amazon Stock Bound for $250 in 2025?

For context, that is a far cry from the $602 billion market that it was in 2023. Altogether, that represents a compound annual growth rate (CAGR) of 21.2%. With companies jockeying to get in on that business, Amazon’s AWS currently holds the lion’s share of that market. Moreover, its success will only feed interest and investment in AMZN stock.

Amazon saw AWS make up 17% of its sales in Q3. However, it also made up a remarkable 60% of its operating income. A big reason for this is the operating margin, which is at 38%. That is well above the commerce business of Amazon, which is only at 5.9%.

If Amazon Web Services can keep up this pace and demand continues, the stock should be looking to make waves in 2025. Considering how it has performed this year, that could be massive in bringing Amazon closer to competing with top stocks like Nvidia (NVDA) and Apple (APPL).